Why does restoring the wallet from passphrase take so much time?

When I tried to restore my Cardano wallet from the 12-word passphrase, it took approximately one hour, even if I didn’t perform any transactions on it and my Daedalus wallet was fully synced. Other people on this forum also had a similar experience: Stuck in "restore wallet" The answer in that particular thread was that the process was not yet optimized but I’m really curious about what really takes up so much time from the technical perspective.

As I understand the recovery process, my 12 word passphrase is used as a seed to generate the sequence of wallet addresses where my ADAs are distributed. The generation of the chain of addresses itself shouldn’t take so much time, so what is taking up the remaining time? Is it some kind of verification of the addresses against the block chain? Does anybody have a clue?

Though I don’t know what causes this issue, according to https://github.com/input-output-hk/daedalus/issues/571:

SebastienGllmt: This is a known issue they’re working on. Charles mentioned they’re working on it in this update video

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thanks! So basically, as I understand, it currently traverses the whole block chain to retrieve the transaction history (said around 11:10 in the video you posted) - makes sense.