A downhole monitoring system and method that includes a sensor system with a sensor array with a number of sensors and a hub. Data measured by the sensors is processed by the hub and wirelessly communicated to a smart node. The sensor system may be mounted in the annulus formed between a borehole wall and an exterior surface of a well casing. The sensors may be configured to monitor the formation for microseismic events generated during hydraulic fracturing. The fracture growth and propagation may be monitored using the data obtained by the sensors. The data may facilitate real time control of the hydraulic fracturing operation.