A method for resource management in a blockchain based IoT network comprising a plurality of IoT nodes connected with each other using block chain is disclosed. The method includes: receiving, by at least one first IoT node, at least one capability information of at least one second IoT node from the block chain based IoT network. The method may further include generating, by the at least one first IoT node, a smart contract to be executed between the at least one first IoT node and the at least one second IoT node based on the at least one capability information and at least one parameter associated with the at last one first IoT node and the at least one second IoT node and executing, by the at least one first IoT node, the smart contract with the at least one second IoT node.