• Off-Chain
• Payment channel
• Lightning network channel
• Algorand
• Blockchain

This thesis delves into the design and implementation of off-chain payment channels
on the Algorand blockchain, adapting the well-known Lightning Network channel protocol
to the Algorand environment. Despite Algorand's unique consensus mechanism based on
Pure Proof of Stake, enabling fast transaction finality and low-cost transactions,
our solution aims to enhance the scalability and efficiency of micropayments—those
occurring frequently over time and involving small amounts of money. The focus of this
work is on creating an off-chain channel solution using a smart contract. We discuss key components for the implementation, including channel opening, off-chain transactions, and channel closure. Finally, we provide a detailed performance evaluation, showcasing
the benefits obtained through the adoption of this solution.