A system for implementing functional logics of a verification IP using a transaction level modeling (TLM) is provided. The system includes (A) a stimulus generator to initiate a transaction and transmit the transaction through a transaction level model interface, (B) a verification IP unit to receive and process the transaction and (C) a signal-level driver to toggle pins of the design under test (DUT) based on the processed transaction. The verification IP unit is configured to (a) divide functional logics of a verification IP unit into one or more finite state machines (FSMs) when a transaction is received from a stimulus generator, (b) define a set of state variables for each of the one or more FSMs, (c) implement a state class for each state of the one or more FSMs and (d) modify the functionality of the one or more FSMs.