This article studies the broad methodology and major application of smart distributed energy resources (DER) in terms of energy generation, consumption, transaction, and power scheduling. This article simplifies a general DER system into a generic type of integrated DER model. This model is used to investigate a smart DER system that transforms three input parameters, (3I parameters) into three critical output functions(3O functions); hence, the model is also called the 3I3O model. The power at a common connection joint can be enabled by a computer that makes computerized decisions to utilize smart DER. Therefore, the computer algorithm collects various data fed into a computer for deep learning and artificial intelligence (AI) decision making. The authors demonstrate important results and the best solutions to meet power demand, offer an economic advantage and have a low carbon footprint for consumers. Moreover, several network blockchain options are discussed. EBC and DER represent an ideal combination with advantages in managing exergy through so-called intelligent power technology. This technology is discussed in detail and includes special hardware, software, and a broad set of computerized intelligence. Finally, the exergy that can possibly be achieved for smart DER systems is discussed.