Whenever a image is added into Blogger Blog, it automatically assigns a Picasa album to it .These images can then be used anywhere ,that too with unlimited bandwidth.
Wait for a while till the image is finished uploading.
5. Select the Uploaded image and Click the Add Selected button.
Here I want to make a special mention of the CDN a.k.a. Content Distribution Network whose most common example is googleapis.These CDN are like Super-Duper fast servers which reduce access time with their dedicated bandwidths.
The following is a example of jQuery Framework hosted on GoogleAPIS:
It is your personal choice whether you want to host your JS file on Blogger or get it through these CDN services or Locally. I personally prefer that these framework be accessed through the Googleapis and the JS file of the Plugin be hosted on Blogger.
Whats Your Take on this ?,feel free to share it.