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In TEAL

In TEAL the Txn is the transaction currently being evaluated. The sender will always* be the contract address
*except in the case of a rekey

Txn.sender() is implicitly the contract address since it cant be anything else.

TL;DR

Do not rely on the pending pool for any security purposes. The pending pool access is meant to allow you checking your own transactions. It does not provide any security guarantee. I see many ways the above can go wrong, even if signatures are checked before entering the pending pool (which …

Using Algo Builder

You can also use Algo Builder which is a framework for creating and testing smart contracts. You can say it’s is similar to what Truffle is for Ethereum. We have a TAEL interpreter and runtime implementation which allows you to rapid unit tests and integration tests. AFAIK we are the only solution …

Transaction Creation

You can create transactions using it. See Your First Application - Algorand Developer Portal See Writing a Simple Smart Contract | Algorand Developer Portal for a full example Or you can debug it. See Smart Contract Debugging - Algorand Developer Portal and Using the TEAL Debugger to Debug a Smart…

Learning Resources

In addition, I would highly recommend to first understand how Algorand works. You can start there: Getting Started on Algorand | Algorand Developer Portal or if you want a more hands-on tutorial: GitHub - algorandfoundation/b…

TEAL Functionality

Yes, there are already applications on TestNet doing that. See for example https://tinyman.org/

TEAL Updates

This is still accurate today (Wednesday, Sept 8). But AVM 1.0 (with TEAL 5) is coming soon and will allow stateful TEAL to essentially create transactions: https://www.algorand.com/resources/algorand-announcements/algorand-new-approach-to-smart-contract-dev