Black holes are thermodynamic objects, but despite recent progress, th
e ultimate statistical mechanical origin of black hole temperature and
entropy remains mysterious. Here I summarize an approach in which the
entropy is viewed as arising from ''would-be pure gauge'' degrees of
freedom that become dynamical at the horizon. For the (2+1)-dimensiona
l black hole, these degrees of freedom can be counted, and yield the c
orrect Bekenstein-Hawking entropy; the corresponding problem in 3+1 di
mensions remains open.