The technological integration of the Internet of Things (IoT)‐Cloud paradigm has enabled intelligent linkages of things, data, processes, and people for efficient decision making without human intervention. However, it poses various challenges for IoT networks that cannot handle large amounts of operation technology (OT) data due to physical storage shortages, excessive latency, higher transfer costs, a lack of context awareness, impractical resiliency, and so on. As a result, the fog network emerged as a new computing model for providing computing capacity closer to IoT edge devices. The IoT‐Fog‐Cloud network, on the other hand, is more vulnerable to multiple security flaws, such as missing key management problems, inappropriate access control, inadequate software update mechanism, insecure configuration files and default passwords, missing communication security, and secure key exchange algorithms over unsecured channels. Therefore, these networks cannot make good security decisions, which are significantly easier to hack than to defend the fog‐enabled IoT environment. This paper proposes the cooperative flow for securing edge devices in fog‐enabled IoT networks using a permissioned blockchain system (pBCS). The proposed fog‐enabled IoT network provides efficient security solutions for key management issues, communication security, and secure key exchange mechanism using a blockchain system. To secure the fog‐based IoT network, we proposed a mechanism for identification and authentication among fog, gateway, and edge nodes that should register with the blockchain network. The fog nodes maintain the blockchain system and hold a shared smart contract for validating edge devices. The participating fog nodes serve as validators and maintain a distributed ledger/blockchain to authenticate and validate the request of the edge nodes. The network services can only be accessed by nodes that have been authenticated against the blockchain system. We implemented the proposed pBCS network using the private Ethereum 2.0 that enables secure device‐to‐device communication and demonstrated performance metrics such as throughput, transaction delay, block creation response time, communication, and computation overhead using state‐of‐the‐art techniques. Finally, we conducted a security analysis of the communication network to protect the IoT edge devices from unauthorized malicious nodes without data loss.