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This study provides an in-depth analysis and research on multimedia fusion privacy protection algorithms based on IoT data security in a network regulation environment. Aiming at the problem of collusion and conspiracy to deceive users in the process of outsourced computing and outsourced verification, a safe, reliable, and collusion-resistant scheme based on blockchain is studied for IoT outsourced data computing and public verification, with the help of distributed storage methods, where smart devices encrypt the collected data and upload them to the DHT for storage along with the results of this data given by the cloud server. After testing, the constructed model has a privacy-preserving budget value of 0.6 and the smallest information leakage ratio of multimedia fusion data based on IoT data security when the decision tree depth is 6. After using this model under this condition, the maximum value of the information leakage ratio of multimedia fusion data based on IoT data security is reduced from 0.0865 to 0.003, and the data security is significantly improved. In the consensus verification process, to reduce the consensus time and ensure the operating efficiency of the system, a consensus node selection algorithm is proposed, thereby reducing the time complexity of the consensus. Based on the smart grid application scenario, the security and performance of the proposed model are analyzed. This study proves the correctness of this scheme by using BAN logic and proves the security of this scheme under the stochastic prediction machine model. Finally, this study compares the security aspects and performance aspects of the scheme with some existing similar schemes and shows that the scheme is feasible under IoT. [ABSTRACT FROM AUTHOR]