Blogger features an image uploading service for blog posts where it provides an unlimited bandwidth. But have you ever wondered where are those images go after it has been uploaded? The images doesn't go somewhere, in fact it goes to Picasa Web Album.
The web album features as I said earlier, an unlimited bandwidth and a maximum of 1GB storage for each of your blog. All images that you uploaded using blogger will go there so even if you deleted the image from your computer, you still have a backup online.
Picasa also has a downloadable version where you can organize your pictures from your computer and upload them directly online. Visit this tutorial for more information.