You've missed a lot. I would suggest reading in the wiki.
Smart strings do not talk DMX.
Using either a USB or Ethernet dongle flashed for pixelnet, you connect that to a hub which provides the power for the strings. Next you connect a SSC to the hub, which translates pixelnet to string data.
The active hub can output 1 DMX universe from the pixelnet data.
The Ethernet dongle receives E1.31 multicast packets (DMX over Ethernet) and will assemble them into the pixelnet data stream. For the current firmware, E1.31 universes 1-8 = pixelnet universe 1, 9-16 = P2, 17-24 = P3, and 25-32 = pixelnet universe 4. The ether(net) dongle puts out 4 universes.
The USB dongle puts out 1 universe.
You can flash either dongle to output DMX or pixelnet.
The official name for the Ethernet dongle is the etherdongle, which is often Abbreviated as EtD.