To have over a million Unspent Transaction Outputs associated with one address — regardless of the amount of bitcoins it contains — is astonishing. (ccinews.net)
Recently, Bitcoin developer Gavin Andresen announced an update to the Bitcoin protocol, allowing users to encode data in transaction outputs in a way that Bitcoin nodes that only want to store the minimum amount of information can safely remove; soon, Mastercoin will be switching its data - encoding outputs to this new format to better cooperate with the Bitcoin community. (bitcoinmagazine.com)
Where transaction outputs normally indicate under what conditions the receiver of a transaction may later spend the bitcoins, these dummy outputs are really just random numbers to ensure that only the person who generated the blinding factor can spend the bitcoins in the real outputs. (bitcoinmagazine.com)