Make the chili seasoning by combining all the ingredients.
Preheat your smoker to 250°F, using hickory, oak, or mesquite wood.
Add the ground beef to a clean and flat surface. Season the ground beef with half of the homemade chili seasoning. Add the tomato paste and diced green chilis for an extra kick. Mix until thoroughly combined, then form the meat into a log and place on a baking rack.
Place the ground beef log on the top or middle rack of the smoker and place your Dutch oven or soup pot under the meat. If you only have one rack in your smoker, place the baking rack directly on top of the Dutch oven.
Prepare chili ingredients by straining and rinsing the canned beans and dicing the onions and peppers. Add the onions and peppers to the chili pot, followed by the tomato paste, diced tomatoes, and beans. Season with the remaining half of the chili seasoning. Smoke for one hour.
Add the tomato sauce and stir until well combined. Smoke for an additional hour.
After two hours, remove the beef log. You can let it cool slightly before crumbling it into the chili pot, or carefully break it apart while hot using heat-resistant gloves. For the best texture, crumble part of the beef into fine pieces so it blends into the chili, and leave some larger chunks for hearty bites.
Smoke for one more hour at 250°F to finish cooking. If the chili thickens too much, stir in a splash of water, broth, tomato juice, or beer. To hold for serving, reduce the smoker to 200°F and keep warm for up to 4 hours.
Serve with your favorite chili toppings or over hot dogs or baked potatoes.