In answer to your questions: Yes, it is possible to set up a blog using the Site Manager's "News" component. Just go to "Media" -> "News", then create a new category for your blog. Then you can create posts within this new category. Each post has a title, description, an optional image, and date settings which allow you to display the item on the website for a particular time period. After the display period ends, the item will automatically change to "archived" status. The description field is for a short summary of the blog post. Each post has a page which should contain the full blog post.
Once you create your blog and posts, you will need to decide where you want them to display on your website. You can display the blog by inserting a section of type: "Components - News". When you insert a section of this type, you will have to select the blog category, as well as how to display the posts: slider, masonry, timeline, full description, title only, etc.. Inserting the news display section, needs to be done only once, although you can have multiple display sections on different pages. When you create additional posts, they will automatically appear in the section(s) you have created.