Compare one-hot and binary state encoding for FSMs.

Binary encoding uses minimum flip-flops (log2(n) for n states) but requires more complex next-state logic with longer combinational paths. One-hot encoding uses one flip-flop per state (n flip-flops for n states) with simpler next-state logic (only checking one bit per transition), resulting in faster operation but more flip-flops. One-hot is preferred in FPGAs (abundant flip-flops, premium on routing) while binary is common in ASICs (flip-flops are expensive). Gray encoding minimizes transitions, useful for low-power or CDC applications.