This thesis aims to understand how information coding and the protocol that it supports can affect the characteristics of electronic circuits. More specifically, it investigates an on-line test methodology called IFIS (If it Fails It Stops) and its impact on the design, implementation and subsequent characteristics of circuits intended for application specific lC (ASIC) technology. The first study investigates the influences of information coding and protocol on the characteristics of IFIS systems. The second study investigates methods of circuit design applicable to IFIS cells and identifies the technique possessing the characteristics most suitable for on-line testing. The third study investigates the characteristics of a 'real-life' commercial UART re-engineered using the techniques resulting from the previous two studies. The final study investigates the effects of the halting properties endowed by the protocol on failure diagnosis within IFIS systems. The outcome of this work is an identification and characterisation of the factors that influence behaviour, implementation costs and the ability to test and diagnose IFIS designs.