In the current landscape, staying abreast of the latest technological advancements is a formidable challenge, especially given the deluge of data inundating the internet. The realization has dawned that effectively managing the surge in emerging data necessitates the integration of multiple technologies. In pursuit of this objective, the Internet of Things (IoT), renowned for its sensor‐based data capture capabilities, is frequently coupled with blockchain technology to ensure secure data storage and access. This amalgamation, in turn, leverages the cloud environment when data volume surpasses a machine's processing capacity, thus mitigating infrastructure and maintenance costs. This study endeavors to optimize data storage within the blocks of the blockchain (BCT) by storing an index that points to the actual data. This innovative approach not only conserves storage space but also enhances operational efficiency. Furthermore, it simplifies the task of identifying malicious or faulty nodes deployed at different locations for data capture within the prescribed time frame. To exemplify this implementation, a case study is presented, focusing on securing user votes through the creation of contracts. The results showcased underscore the preference for a permissioned blockchain, such as Fabric, over a permissionless one, like Ethereum, particularly in the context of security considerations. The findings reveal that as the number of operations (in this case, votes cast) increases, Ethereum's performance deteriorates, while Fabric exhibits exceptional robustness. Additionally, the study analyzes sensor data simulated via IoT nodes before and after the application of security algorithms to underscore the significance of the proposed Secure Cloud‐Based Blockchain (SCB2) model. The analysis encompasses various facets, including the creation, validation, and computation times of transactions and blocks within a node, and positions the model favorably in comparison to existing literature.