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When are Bitcoin transaction outputs generated more than two?
In my understanding, if my wallet has only UTXOs that have more values than i wanted to spend(send), then two outputs are generated which one is for sending my BTC to someone and another is for change to my wallet back. But I saw several transactions in bitcoin explorer that has more than 3 outputs. What are they?
Bitcoin inputs and outputs are only limited by transaction size. There are scenarios when you may see a few inputs with many outputs, such as an exchange performing many user withdrawals in a single transaction.
Conversely, you often see transactions with hundreds of inputs, and very few outputs. These are also usually exchanges, or people/companies with lots of receiving addresses, combining the utxos into a handful or large utxos (usually to a cold wallet).
