I am aware that the entropy content of a black hole is proportional to the area of its event horizon, and that this can be boiled down to the bit content of a Planck area on the horizon, but I have the following questions about this proportionality:

Does the entropy in some sense reside on the event horizon, or is the proportionality just an abstract relationship? And

If the entropy does reside on the event horizon, how is it encoded in the surface area? That is, if there's one bit contained within a Planck area, what differentiates a Planck area that represents a "zero" bit from one that represents or contains a "one" bit?

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    $\begingroup$ Does the entropy in some sense reside on the event horizon No one knows. There are many quite different proposals for the description of quantum black hole states all giving the same entropy. This is sometimes referred to as “problem of universality”. For a recent review see Carlip, “Black Hole Thermodynamics” arXiv:1410.1486. $\endgroup$ – A.V.S. Aug 19 '19 at 6:09
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