Gray codes have a useful property in that consecutive numbers differ in only a single bit position. Table 3.23 lists a 3-bit Gray code representing the numbers 0 to 7. Design a 3-bit modulo 8 Gray code counter FSM with no inputs and three outputs. (A modulo N counter counts from 0 to N − 1, then repeats.

For example, a watch uses a modulo 60 counter for the minutes and seconds that counts from 0 to 59.) When reset, the output should be 000. On each clock edge, the output should advance to the next Gray code. After reaching 100, it should repeat with 000.

Table 3.23 3-bit Gray code Number Gray code 3 1 4 1 1 1, 2. 6.