A method for accelerating hardware simulation is presented wherein cycle based simulations of digital system designs are generated by raising the level of abstraction in a hardware simulation environment. Behavioral models of the digital system components are created in a high level general purpose programming language. Function calls created in a high level general purpose programming language provide a transaction based communication interface. During a simulation of the system design, the behavioral models communicate with each other through the transaction based communication interface. Additionally, the behavioral models employ an execute and update method of instruction processing that generates cycle accurate information for the simulation.