As the use of internet of things (IoT) devices increases, the importance of security has increased, because personal and private data such as biometrics, images, photos, and voices can be collected. However, there is a possibility of data leakage or manipulation by monopolizing the authority of the data, since such data are stored in a central server by the centralized structure of IoT devices. Furthermore, such a structure has a potential security problem, caused by an attack on the server due to single point vulnerability. Blockchain’s, through their decentralized structure, effectively solve the single point vulnerability, and their consensus algorithm allows network participants to verify data without any monopolizing. Therefore, blockchain technology becomes an effective solution for solving the security problem of the IoT’s centralized method. However, current blockchain technology is not suitable for IoT devices. Blockchain technology requires large storage space for the endless append-only block storing, and high CPU processing power for performing consensus algorithms, while its opened block access policy exposes private data to the public. In this paper, we propose a decentralized lightweight blockchain, named Fusion Chain, to support IoT devices. First, it solves the storage size issue of the blockchain by using the interplanetary file system (IPFS). Second, it does not require high computational power by using the practical Byzantine fault tolerance (PBFT) consensus algorithm. Third, data privacy is ensured by allowing only authorized users to access data through public key encryption using PKI. Fusion Chain was implemented from scratch written using Node.js and golang. The results show that the proposed Fusion Chain is suitable for IoT devices. According to our experiments, the size of the blockchain dramatically decreased, and only 6% of CPU on an ARM core, and 49 MB of memory, is used on average for the consensus process. It also effectively protects privacy data by using a public key infrastructure (PKI).