Part 3/9:
To make Bitcoin management easier, community-driven standards known as Bitcoin Improvement Proposals (BIPs) have been introduced. Of particular interest are:
BIP 32: Defines hierarchical deterministic wallets.
BIP 39: Introduces the use of a list of 2,400 seed words that can regenerate your private keys.
When you set up a new wallet, most systems provide a seed phrase—often 12 or 24 words—that can be entered into any compatible wallet software or hardware to recover your Bitcoin if the original device is lost or damaged.