There exist certain challenges like high overhead, poor performance, and detection of malicious nodes in the vehicular ad hoc network. For improvement in security and performance, an algorithm is proposed and named as efficient secure routing algorithm (ESRA), which is based on a dual authentication scheme having a moderate level of time and space complexities. The proposed algorithm is implemented in two stages. At the first stage, the malicious nodes are detected depending upon the destination sequence number without using encryption and decryption. Authentication is checked using public key cryptography in the second stage, which provides less computational complexity. The comparison of the proposed algorithm with other secure routing protocols using the National Choi Tung University (NCTUns) simulator has been done. The proposed scheme in this research has the capability of preventing malicious attacks like tracking location, manipulation, impersonation, wrong information, Sybil, replay, and DOS, and it also supports traditional security needs and traceability. The main advantage of our proposed algorithm is that it uses a short key length leading to speedy encryption, and it consumes less power. Although there is a little disadvantage associated, it increases the size of encrypted text, yet security is not compromised. The result shows that throughput increases by 25% in the proposed algorithm, numbers of collisions are lesser, and packet drop is reduced by 15%. The results prove that this novel proposed algorithm is more effective in a sparse vehicular environment, is lightweight and secure, and finds applications in e-health care, smart ecosystem, and intelligent transportation systems, etc.