Rotor imbalance is considered to be one of the main mechanical faults of rotating machinery; which may result in bearing damage and even catastrophic system failure. Recent progress in the Internet of Things (IoT) has promoted the application of novel sensing and computing techniques in the industry, and it is promising to employ novel IoT techniques for imbalance detection to avoid potential failures. Existing sensing techniques suffer from the impact of bearing structure dynamics, loss of accuracy during their lifetime, and security risks introduced by the sensor cabling and supports, which may, in turn, interfere with the machine operations due to inappropriate design and installation. This investigation provides an on-shaft machine wearable vibration sensing technique for effectively monitoring the running state of rotors while minimizing the interference with their operations. In this work, key investigations include the following: (1) theoretical modeling and an analysis of rotor imbalance, and its measurement with an on-shaft micro-electromechanical system (MEMS) accelerometer; (2) the development of a wirelessly powered, cordless on-shaft vibration measurement (OSVM) sensor for unobtrusive sensing of the vibration of rotating shafts; (3) the in-sensor computing design for optimizing the distribution of computing resources and decreasing data transmission. The tests and evaluation of the proposed techniques were conducted with a rotor test rig to demonstrate their feasibility. The presented investigation is a typical example of applying new sensing and computing paradigms to improve the flexibility and convenience of applications, which is a good reference for related investigations and practices.