The goal of state minimization is to identify and merge to reduce the number of flip-flops and the complexity of the next-state logic. Two states are equivalent if they produce the same output and transition to the same (or equivalent) next states for every possible input.

Once the number of states is finalized, each state must be assigned a unique binary code. The choice of encoding directly impacts the number of logic gates and the overall power consumption of the circuit. State Minimization Techniques | PDF - Scribd

In digital design, and State Assignment are the two critical phases for optimizing Finite State Machines (FSMs) . Minimizing states reduces the total hardware footprint, while strategic assignment ensures the resulting logic gates are as simple and efficient as possible. 1. State Minimization

: States are divided into groups (blocks) based on their outputs. These blocks are then refined based on where their next states land until no further splitting is possible. 2. State Assignment (State Encoding)

: A simple manual check where you eliminate a state if its entire row in a state table (next states and outputs) is identical to another row.

: A systematic method that uses a grid to compare all pairs of states. It identifies pairs that cannot be equivalent and iteratively narrows down those that are.