What Causes A Round Cyst Like Lump On The Palm?

Question : Hello, several months ago i started having pain in my hand and noticed a small round cyst like lump on my palm halfway between my thump and middle finger, The lump was an open sore, completely round and about the diameter of an 81 mg aspirin and it that bled a lot.
I thought at first it was a splinter of wood or steel that had stabbed me and was stuck inside but I could not find anything. My mother told me it was a wart, Although it did not look or behave like any wart I had ever heard off, I start using compound W, but after 3 months of daily treatment there has been no change in size or look. It should be noted, there has never been any pus or clear liquid in the hole/sore, with a tissue or band aid it will scab over but within a day will become very painful, almost like pressure building up and I am forced to remove the scab and blood comes out and i feel better for awhile.
Today I finally saw something different when I removed the scab, but it has me worried. Attached to the scab was centimeter and a half white string coming from within the bloody area, it was the same thickness as the string on a teabag. I am tired of the pain and bleeding all the time, any thoughts?

Hi Dr. Chandrakant, thank you for your quick reply, I have uploaded some pictures of my hand, I tried to clean off the dried blood but I didn't want to risk opening the Sore again, the last picture is after the peroxide. The peroxide made the bubble a bit more white in color.