BIP39 vs BIP32 vs BIP44: How the Seed Standards Fit Together

BIP39, BIP32 and BIP44 are not competing standards but three layers of the same wallet. BIP39 turns random entropy into the 12 to 24 words you back up and turns those words into a 512-bit seed; BIP32 turns the seed into a tree of keys; BIP44 fixes where in that tree each coin, account and address sits. Almost every modern wallet uses all three at once, so the useful question is how they fit together, not which one to pick.

BIP39 vs BIP32 vs BIP44 at a Glance

What Are BIP Standards?

Bitcoin Improvement Proposals are the documents in which developers specify changes and shared formats for Bitcoin; our guide to Bitcoin Improvement Proposals explains how they are written and numbered. Wallet standards such as these three are not consensus rules, and no node checks them. They matter because wallets that follow the same ones can restore each other’s backups, and many other networks, from Ethereum to TRON, reuse them with their own coin numbers.

What Does Each Standard Do?

BIP39: Human-Friendly Mnemonic Phrases

BIP39 takes 128 to 256 bits of random entropy, adds a short SHA-256 checksum and splits the result into 11-bit groups, each pointing to one of 2,048 words. One of the official BIP39 test vectors, the entropy 9e885d952ad362caeb4efe34a8e91bd2, becomes “ozone drill grab fiber curtain grace pudding thank cruise elder eight picnic”. The words, plus an optional passphrase, then go through PBKDF2 to produce the 512-bit seed. Our step-by-step BIP39 visualizer shows each stage, and the BIP39 seed phrase generator creates random phrases next to their entropy.

BIP32: Hierarchical Deterministic Wallets

BIP32 introduced hierarchical deterministic wallets, enabling you to create a nearly unlimited number of child keys from a single master seed. BIP32 does not define mnemonics: it takes the seed (which BIP39 produces from the words) and outputs extended keys. An extended public key (xpub) can derive the public keys of its normal children without any private key, which is how watch-only wallets work. For example, the master extended public key of BIP32 test vector 1 is xpub661MyMwAqRbcFtXgS5sYJABqqG9YLmC4Q1Rdap9gSE8NqtwybGhePY2gZ29ESFjqJoCu1Rupje8YtGqsefD265TMg7usUDFdp6W1EGMcet8.

BIP44: Multi-Coin, Multi-Account Framework

BIP44 builds upon BIP32 and the purpose field of BIP43, providing a standardized derivation path (m / purpose’ / coin_type’ / account’ / change / address_index) so that a phrase restored in another wallet finds the same accounts. BIP44 does not define mnemonics either: it fixes the path. For the test phrase “abandon abandon … about”, the first Bitcoin address at m/44'/0'/0'/0/0 is 1LqBGSKuX5yYUonjxT5qGfpUsXKYYWeabA; you can reproduce it with the public test phrase in our seed phrase to private key converter. The derivation path guide covers BIP44’s successors for SegWit and Taproot addresses.

How the Three Standards Work Together

When you create or restore a wallet, BIP39, BIP32 and BIP44 run in this order:

1. BIP39 turns entropy into the words you back up, and the words, plus any passphrase, into a seed.
2. BIP32 derives a whole tree of keys from that seed.
3. BIP44 (and its successors BIP84 and BIP86) fixes where in that tree each coin, account and address lives.

So the real choices are the length of your phrase (12 or 24 words), whether to add a passphrase, and the address type your wallet uses, not the standard itself. A phrase made in one BIP39 wallet restores in another, but it shows the same addresses only if the second wallet looks on the same path.

What Each Standard Produces

Only BIP39 produces words; the other two work on what comes out of it. All values below come from official test vectors, so you can check them in any compliant wallet library (they are public: never use them for real funds).

• BIP39: the phrase “abandon abandon abandon abandon abandon abandon abandon abandon abandon abandon abandon about” (entropy of all zeros).

• BIP32: the master extended public key xpub661MyMwAqRbcFtXgS5sYJABqqG9YLmC4Q1Rdap9gSE8NqtwybGhePY2gZ29ESFjqJoCu1Rupje8YtGqsefD265TMg7usUDFdp6W1EGMcet8 (test vector 1).

• BIP44: the address 1LqBGSKuX5yYUonjxT5qGfpUsXKYYWeabA at m/44'/0'/0'/0/0 for the BIP39 phrase above.

More valid phrases: seed phrase examples.

How Is the Wallet Tree Structured?

The diagram shows where each standard acts, from the phrase down to single addresses:

BIP39 phrase (+ optional passphrase)
└── 512-bit seed
    └── m: BIP32 master key
        ├── 44': BIP44 purpose
        │   ├── 0': Bitcoin
        │   │   ├── 0': account 0
        │   │   │   ├── 0: receiving addresses  /0/0, /0/1, /0/2 …
        │   │   │   └── 1: change addresses     /1/0, /1/1 …
        │   │   └── 1': account 1
        │   └── 60': Ethereum
        │       └── 0': account 0 → 0 → addresses 0, 1, 2 …
        └── 84': BIP84 purpose (native SegWit), same layout

BIP39 ends at the seed, BIP32 supplies every arrow below it, and BIP44 gives the numbers their meaning. The apostrophes mark hardened levels, which an extended public key cannot derive; that is why wallets share keys at the account level and below.

How Do You Keep the Backup Safe?

Even the best standard won’t protect you if you neglect security. Consider these guidelines:

• Keep It Offline: Store your seed phrase on paper or a metal plate, not on internet-connected devices.

• Use Hardware Wallets: Combine these standards with a reliable hardware wallet for enhanced protection.

• Backup Thoroughly: Make multiple backups and keep them in separate, safe locations.

• Beware of Phishing: Never enter your seed into suspicious websites. Always verify URLs and sources.

• Encrypt Digital Copies: If you must keep a digital backup, encrypt it and store it offline.

• Note the Path: Write the wallet name, address type and any non-default account next to your backup. The path is not secret, and it saves guesswork later.

Pro Tip: Test your backups by restoring a wallet before adding substantial funds. This practice ensures that if something goes wrong, you discover it before risking your capital.

Which Standard Matters When You Restore a Wallet?

All three, in turn. The words must form a valid BIP39 phrase, which the BIP39 checksum checker confirms; the wallet must derive keys with BIP32; and it must look on the same BIP44-style path, with the same passphrase, as the wallet that made the backup. If the phrase is accepted but the balance is zero, the path or the passphrase is the usual reason, not the words.

Frequently Asked Questions

Is BIP39 the same as BIP32?

No. BIP39 defines the words and how they become a seed; BIP32 defines how a seed becomes keys. A wallet can use BIP32 with a seed from another source, such as Electrum’s own seed format.

Do I need to know my BIP44 path?

Usually not: wallets fill it in. It matters when you restore a backup in a different wallet, especially for SegWit and Taproot addresses or for Ethereum accounts after the first.

Do Ethereum and other coins use BIP39 and BIP44?

Most do: one BIP39 phrase can serve many networks, and BIP44’s coin type keeps each in its own branch, m/44'/60'/… for Ethereum. Some networks use other schemes; see seed phrase formats by network.

Explore the BIP series: What are Bitcoin Improvement Proposals? · BIP-32: Hierarchical Deterministic Wallets · BIP-44: Multi-Account Hierarchy · BIP-85: Child Seeds From One Master Seed · BIP-110 (BIP-444): Reduced Data Temporary Softfork · BIP-157: Client-Side Block Filtering