Abstract: As the number of devices joining the Internet of Things (IoT) keeps increasing, vast amounts of data are being mined, and data sharing can exploit their considerable value. Owing to its advantages of decentralization, consistency, and traceability, blockchain technology can be used to build an efficient and reliable IoT data sharing system. To facilitate the use of blockchain in IoT devices, we design a new slicing- and coding-based consensus algorithm (SCCA). The proposed consensus algorithm considers the storage optimization of the blockchain ledger. Specifically, the SCCA slices and encodes consensus resources and divides the blockchain nodes into different domains. It allows multiple domains to perform consensus concurrently and collaborate to store the blockchain ledger. Finally, we construct an experimental platform and evaluate the scheme. Experimental results reveal that the SCCA can increase throughput by more than five times and reduce communication costs by 95.7%, compared to the practical Byzantine fault tolerance method. In addition, the SCCA can reduce the storage cost of a single node to approximately 28.5% of that of the Bitcoin system.