What Is BIP44 (Multi-Account Hierarchy)?
BIP44 (Bitcoin Improvement Proposal 44) extends BIP32 by defining a standard hierarchical structure for organizing multiple accounts and cryptocurrencies within a single wallet. It provides a universal derivation path format that ensures compatibility across different wallet software.
Standard Derivation Path
BIP44 uses the path structure: m / 44' / coin_type' / account' / change / address_index. For Bitcoin, this typically looks like m/44'/0'/0'/0/0, where each level serves a specific organizational purpose.
Key Benefits
Multiple Accounts
BIP44 lets you create separate accounts (like "savings", "spending", "business") all from one mnemonic phrase, each with its own set of addresses.
Wallet Portability
Since BIP44 is a widely adopted standard, you can restore your wallet in any BIP44-compatible software and it will automatically discover all your accounts and addresses using the same derivation paths.
BIP44 works in harmony with BIP32 and BIP39 to provide a complete, standardized wallet system. Modern wallets like descriptor wallets build upon these foundations with even more flexibility.
Quick Facts
- •Defines the path structure: m/44'/0'/0'/0/0
- •Enables managing multiple cryptocurrencies from one seed
- •Standard for most modern wallets