In the process of the continuous reform of modern social economic system and the continuous development of science and technology, the distribution of the Internet of things reflects good application value. However, the Internet of things has many distributed nodes, data center, high computing cost and poor supervision. In the process of privacy protection, there are still some objective problems. Therefore, the use of blockchain technology in the privacy protection of the Internet of things privacy data block, structure decentralization, information hierarchy and other aspects, which can establish a more perfect Internet of things privacy protection model and more rich management mechanism, making the prevention of privacy leakage, data tampering and other aspects of privacy protection work has been further developed. Therefore, this paper takes the implementation mode of blockchain smart contract in smart home privacy protection as an application example to analyze the application value of blockchain in the privacy protection of Internet of things.