blogs.dir was the way to handle specific blog plugins and themes when it was WordPress-MU
but since version 3 came out and the WordPress-MU was integrated into WordPress Core and introduced WordPress Multisite, that’s no longer the story.
WordPress Handles the creation of the new blogs/sites in the database and mainly in the background so you won’t see too many things changing, but it also includes a new menu in the admin “Super Admin”
which lets you handle the content for all sites in one place and they all site in one place.
so basically WordPress handle this issue of `blogs.dir’ for you.
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