Internet of Things (IoT) networks for smart sensor nodes in the next generation of smart wireless sensing systems require a distributed security scheme to prevent the passive (eavesdropping) or active (jamming and interference) attacks from untrusted sensor nodes. This paper concerns advancing the security of the IoT system to address their vulnerability to being attacked or compromised by the advancement of future supercomputers. In this work, a novel embedded architecture has been designed and implemented for a distributed IoT network that utilizes a master-slave full-duplex communication to exchange the random and continuous modulated phase shift as the secret key to be used in higher-layer encryptions.