This paper discusses the development of an algorithm for the data analysis to monitor Two-Wire-Interface operation in order to improve the reliability of communication. This algorithm is designed to improve code-efficiency with regards to hardware modelling. An algorithm for the protocol used in the Standard-Mode, Fast-Mode, Fast-Mode Plus and High-Speed-Mode was developed. The proposed algorithm has been derived using the bus protocol specification and implemented in hardware via a hardware description language. The correct operation of the algorithm was proofed by applying the hardware system on a sample communication. The paper also describes the development process of embedded systems and provides information on aspects regarding hardware modelling including a mathematical description of the TWI protocol is provided.