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Abstract The Internet of Things (IoT) has emerged as a significant technological advancement in recent years. Its development has garnered global attention from many organisations, industries and researchers. The IoT is responsible for collecting and processing data from remote areas, significantly enhancing productivity for distributed systems and individuals. Secure hash algorithms (SHAs) are critical to ensuring enhanced security levels within IoT ecosystems. These algorithms generate fixed-size hash values from input data, making them useful for various security applications. This paper proposes a new multi-level hashing algorithm (MLHA) that could overcome challenges and significantly impact IoT security. The proposed MLHA was carefully considered and managed to effectively enhance IoT security without compromising the performance and efficiency of IoT devices. The new hashing algorithm is suitable for all IoT devices, ranging from small devices with limited processing power fuelled by batteries to larger devices with constant electrical power and vast resources. This study’s main objective is to develop a new hashing algorithm specifically designed for IoT devices. This research strives to enhance IoT devices’ data protection and security measures using improved hashing algorithms. This objective will be achieved by examining various IoT devices, analysing current algorithms and developing strategies that effectively balance efficiency and security. Furthermore, the suggested algorithm presents a novel methodology for enhancing data security in IoT devices. The algorithms examined in this paper are from the SHA family, which are based on bitwise operations. However, these algorithms were modified to enhance their efficiency and scalability for IoT devices. The proposed algorithm comprises eight levels, each accommodating a particular IoT device. The first level is characterised by its basic nature and is specifically tailored for devices with limited resources, including low RAM and CPU and battery capacity. As the process of iterative evolution progresses, each level demonstrates adaptability to the capabilities of various IoT devices. Moreover, the algorithm progresses towards its higher levels, which are characterised by complex equations, functions, output lengths, more words, increased arithmetic and logical operations and iterations. These advanced levels of the proposed algorithm were designed to cater to larger, more complex IoT devices than the initial-stage devices.

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