The future of the Internet of Things (IoT) is interlinked with digital communication in smart cities. The digital signal power spectrum of smart IoT devices is greatly needed to provide communication support. The line codes play a significant role in data bit transmission in digital communication. The existing line-coding techniques are designed for traditional computing network technology and power spectrum density to translate data bits into a signal using various line code waveforms. The existing line-code techniques have multiple kinds of issues, such as the utilization of bandwidth, connection synchronization (CS), the direct current (DC) component, and power spectrum density (PSD). These highlighted issues are not adequate in IoT devices in smart cities due to their small size. However, there is a need to design an effective line-code method to deal with these issues in digital IoT-based communication for smart technologies, which enables smart services for smart cities. In this paper, the Shadow Encoding Scheme (SES) is proposed to transmit data bits efficiently by using a physical waveform in the smart cities' ecosystem. SES provides a reliable transmission over the physical medium without using extra bandwidth and with ideal PSD. In it, the shadow copy of the repeating bitstream is forwarded, rather than repeating the actual stream again and again. The PSD is calculated with the help of mathematical equations to validate SES. MATLAB simulator is used to simulate SES and compared with other well-known digital line-code techniques. The bit error rate is also compared between SES and the chirp spread spectrum (CSS) for the specific data frames. The coordinates of the PSD graph are also shown in tabular form, which shows a vivid picture of the working conditions of various line codes.