The combination of blockchain technology and wireless sensor networks (WSNs) has shown promise in boosting the security and dependability of smart grid systems. In order to improve security, this research paper focuses on integrating blockchain technology into the use of WSNs for fault detection in smart grids. The design, advantages, and difficulties of this technique are covered in the paper along with a case study that illustrates how it might be used in real-world settings. The findings demonstrate that a WSN and blockchain technology combination offers a reliable and safe method for real-time detection of faults in smart grids. A module of IoT in a node routing practice of smart grid built on blockchain has improved the security of the smart grid network. The industrial study was conducted using a transfer convolutional network that uses Q-learning for defect identification in a network. Experimental evaluation has been done in terms of accuracy, RMSE, and bit error rate. A bit error rate of 68%, accuracy of 97%, and RMSE of 76% were achieved by the suggested technique. Given that security is the main obstacle to the introduction of smart grids, this proposed paradigm is useful for better security and fault detection over the network.