It uses 2 separate file servers, images.hive.blog if you log in with keychain, and my own s3 bucket if you login with email. If images.hive.blog isn't working for whatever reason, it fails over to my own s3 bucket.
The images are automatically resized to fit within the limit for the site, so you don't have to worry about what size you upload at.
RE: Introducing XPLpic