In the developing topic of smart cities, Vehicular Ad-Hoc Networks (VANETs) are crucial for providing successful interaction between vehicles and infrastructure. This research proposes a distributed Blockchain-based Vehicular Ad-hoc Network (DistB-VNET) architecture that includes binary malicious traffic classification, Software Defined Networking (SDN), and Network Function Virtualization (NFV) to ensure safe, scalable, and reliable vehicular networks in smart cities. The suggested framework is the decentralized blockchain for safe data management and SDN-NFV for dynamic network management and resource efficiency and a noble isolation forest algorithm works as an IDS (Intrusion Detection System). Further, "DistB-VNET" offers a dual-layer blockchain system, where a distributed blockchain provides safe communication between vehicles, while a centralized blockchain in the cloud is in charge of data verification and storage. This improves security, scalability, and adaptability, ensuring better traffic management, data security, and privacy in VANETs. Furthermore, the unsupervised isolation forest model achieves a high accuracy of 99.23% for detecting malicious traffic. Additionally, reveals that our method greatly improves network performance, offering decreased latency, increased security, and reduced congestion, an effective alternative for existing smart city infrastructures.