Decoding the Apparent Horizon: Coarse-Grained Holographic Entropy.

When a black hole forms from collapse in a holographic theory, the information in the black hole interior remains encoded in the boundary. We prove that the area of the black hole's apparent horizon is precisely the entropy associated with coarse graining over the information in its interior, subject to knowing the exterior geometry. This is the maximum holographic entanglement entropy that is compatible with all classical measurements conducted outside of the apparent horizon. We identify the boundary dual to this entropy and explain why it obeys the second law of thermodynamics.