A new paradigm for black holes is introduced. It is known as the External Energy Paradigm. The paradigm asserts that all energies of a black hole are external quantities; they are absent inside the horizon. These energies include constituent mass, gravitational energy, electrostatic energy, rotational energy, heat energy, etc. As a result, quantum particles with charges and spins cannot exist inside the black hole. To validate the conclusion, we derive the moment of inertia of a Schwarzschild black hole and find that it is exactly equal to mass × (Schwarzschild radius)2, indicating that all mass of the black hole is located at the horizon. This remarkable result can resolve several long-standing paradoxes in black hole theory; such as why entropy is proportional to area and not to volume, the singularity problem, the information loss problem and the perplexing firewall controversy.