Why using PnPO365ManagementShell parameter with Connect-PnPOnline allows to be multitenant?

Question

I cannot find enough information googling about this issue and I would like to understand why connecting to a SharePoint Online tenant with this parameter, PnPO365ManagementShell allows me to work in a multitenant way. I would like to know what are the things I'm able to do differently from running the command with SPOManagementShell parameter.