By default, the Blogger website hosts your Blogger blog, meaning your blog has an address with the blogspot.com domain. In the original Blogger, you could also host your blog on your own web server, using the Blogger service to create your blog pages and posts, which then transferred to your own server. That option, however, is not available with the new Blogger.
You see, the concept of dynamic serving is the basis of the new Blogger. That means when you make a change to your blog, it's dynamic; you see the results immediately, without having to go through the old "republish your blog" routine. Unfortunately, dynamic serving makes hosting your blog on another site difficultif not impossible.
The old hosting process required Blogger to publish any new or changed pages first, and then transfer those pages to your server via FTP. Because the new Blogger generates pages dynamically, there are no published pages to transfer. The result is that, if you're using the new Blogger, you can't host your blog on another server. Google says you can continue to use the old Blogger system to create nondynamic (static) blog pages, and transfer these pages to your server via FTP. However, if you want to take full advantage of all the features in the new Blogger, you have to switch to Google's Blogspot hosting.
Want to keep up-to-date with new Blogger developments? Check out Googlepedia: The Blog (googlepedia.blogspot.com), which features news and information about all things GoogleBlogger included.