At a low level of abstraction, a protocol is often most easily understood as a state machine. Design criteria can also easily be expressed in terms of desirable or undesirable protocol states and state transitions. In a way, the protocol state symbolizes the assumptions that each process in the system makes about the others. It defines what actions a process is allowed to take, which events it expects to happen, and how it will respond to those events.
The Xcell Journel Issue 81 gives some important tips on implementing state machines in your FPGA
Link to Xcell Journel issue 81
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