Formal equivalence checking process is a part of electronic design automation (EDA), commonly used during the development of digital integrated circuits, to formally prove that two representations of a circuit design exhibit exactly the same behavior. In general, there is a wide range of possible definitions of functional equivalence covering comparisons between different levels of abstraction and varying granularity of timing details. The most common approach is to consider the problem of machine equivalence which defines two synchronous design specifications functionally equivalent if, clock by clock, they produce exactly the same sequence of output signals for any valid sequence of input signals. Microprocessor designers use equivalence checking to compare the functions specified for the instruction set architecture (ISA) with a register transfer level (RTL) implementation, ensuring that any program executed on both models will cause an identical update of the main memory content. This is a more general problem. A system design flow requires comparison between a transaction level model (TLM), e.g., written in SystemC and its corresponding RTL specification. Such a check is becoming of increasing interest in a system-on-a-chip (SoC) design environment. The register transfer level (RTL) behavior of a digital chip is usually described with a hardware description language, such as Verilog or VHDL. This description is the golden reference model that describes in detail which operations will be executed during which clock cycle and by which pieces of hardware. Once the logic designers, by simulations and other verification methods, have verified register transfer description, the design is usually converted into a netlist by a logic synthesis tool. Equivalence is not to be confused with functional correctness, which must be determined by functional verification. The initial netlist will usually undergo a number of transformations such as optimization, addition of Design For Test (DFT) structures, etc.

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Circuit design
The process of circuit design can cover systems ranging from complex electronic systems down to the individual transistors within an integrated circuit. One person can often do the design process without needing a planned or structured design process for simple circuits. Still, teams of designers following a systematic approach with intelligently guided computer simulation are becoming increasingly common for more complex designs.

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