Finite State Machines
The output of a sequential circuit or computer program at any time is completely determined by its current inputs and current state. Since each binary memory element has only two possible states, 0 or 1, the total number of different states a circuit can assume is finite, and fixed by the number of memory elements. If there are N binary memory elements, a digital circuit can have at most 2N distinct states. The concept of state is formalized in an abstract mathematical model of computation called a finite state machine, used to design both sequential digital circuits and computer programs.
Read more about this topic: State (computer Science)
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