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The diagram makes sense for me.
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It also makes sense to me too, but I was more interested in the ultimate goal, rather than this specific idea. There may be an alternative solution that does not require trying to get into "black box" IP.
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I have a similar situation in a design, where it would be interesting to connect several virtual JTAG functions used for service and debug purposes (e.g. source and probe, in-system memory content editor, signal tap) to a network interface instead of JTAG.
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This is the situation I am facing with regards to a new design. Rather than trying to break into the IP, its easier to take over the JTAG interface. In your case, is there a host with network interface that can always access the JTAG USB-Blaster interface? If that host is an x86, then you could conceivable run the JTAG server on that machine. Then a remote machine running Quartus can be used to access the device.
I have done some testing using a PowerPC host (which cannot run Quartus). I plugged a BeMicro into a PowerPC USB interface, then used USB-over-IP to export the USB-Blaster over the network. A remote x86 host running Quartus and the USB-over-IP client software then connected to the USB-Blaster as a local USB device (the USB-over-IP client software converts the IP packets back to USB packets). This enabled the x86 to run the Quartus GUI and tools without having to break into the "black box" IP or reverse the protocols for their tools.
Cheers,
Dave