user139463: I have tx hash 5b03738ed2cc9c80e6a4dded10794ab28efca2671039764217d53c54f64a3f39 and it contains 11 outputs. I understand how UTXO works, but where I feel confused is how does the sending address know to create multiple outputs? Like are those receiving addresses all going to the same person? Why is there multiple addresses to begin with? Why not one for the transaction value and then another one for the "change"?
Can someone explain this to me as if I were 5 years old?

user13866: A transaction can have many outputs, hundreds.
Whoever creates that that transaction just has to know the address for each recipient.
Say you set up a business with a thousand employees and paid them in Bitcoin. When you enrol the new employee you could ask them for a Bitcoin address to receive their salary. Each month your payroll program would create one transaction that pays your employees.
Say you are a currency exchange and every day about 1000 customers use your exchange to convert dollars or euros into Bitcoin. At the end of each day you could create one transaction that pays all customers in one go using the payment addresses the customers provided when requesting the currency conversion.
One transaction with a thousand outputs is smaller and therefore cheaper in transaction fees than a thousand separate transactions.

139463: <p>I have tx hash 5b03738ed2cc9c80e6a4dded10794ab28efca2671039764217d53c54f64a3f39 and it contains 11 outputs. I understand how UTXO works, but where I feel confused is how does the sending address know to create multiple outputs? Like are those receiving addresses all going to the same person? Why is there multiple addresses to begin with? Why not one for the transaction value and then another one for the &quot;change&quot;?</p>
<p>Can someone explain this to me as if I were 5 years old?</p>
 13866: <p>A transaction can have many outputs, hundreds.</p>
<p>Whoever creates that that transaction just has to know the address for each recipient.</p>
<p>Say you set up a business with a thousand employees and paid them in Bitcoin. When you enrol the new employee you could ask them for a Bitcoin address to receive their salary. Each month your payroll program would create one transaction that pays your employees.</p>
<p>Say you are a currency exchange and every day about 1000 customers use your exchange to convert dollars or euros into Bitcoin. At the end of each day you could create one transaction that pays all customers in one go using the payment addresses the customers provided when requesting the currency conversion.</p>
<p>One transaction with a thousand outputs is smaller and therefore cheaper in transaction fees than a thousand separate transactions.</p>
