BIP 44, outlined in BIP-44, expands on hierarchical deterministic wallets introduced by BIP 32. It defines a logical structure for multiple accounts and different cryptocurrencies within the same seed phrase, so you can easily manage Bitcoin, Litecoin, and other assets all in one organized approach.

By following a specific derivation path (e.g., m/44'/0'/0'/0/0 for Bitcoin’s first receiving address), wallets ensure consistency, making it simpler to restore funds in another compatible wallet. BIP 44 plays a huge role in user-friendly wallet experiences, removing confusion around key management and boosting interoperability across the ecosystem.