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There are several causes of blisters.
'Blisters are usually caused by injury to the skin from heat or from friction, which create a tear between the epidermis—the upper layer of the skin—and the layers beneath.
Short periods of intense rubbing can cause a blister, but any rubbing of the skin at all can cause a blister if it is continued for long enough. Blisters form more easily on moist skin than on dry or soaked skin, and are more common in warm conditions.
Sometimes, the skin can blister when it comes into contact with a cosmetic, detergent, solvent or other chemical; this is known as contact dermatitis. Blisters can also develop as a result of an allergic reaction to an insect bite or sting.
There are also a number of medical conditions that cause blisters. The most common are chickenpox, herpes, impetigo, and a form of eczema called dyshidrosis.
A lubricant, typically talcum powder, can be used to reduce friction between skin and apparel.
Sunscreen and sun protection should also be used during the hottest part of the day to avoid blisters from sunburn, and moisturizing, after-sun or calamine lotions can help to ease discomfort.'
http://en.wikipedia.org/wiki/Blister
It would be best to consult a doctor because of the recurrence in your case. The chances that this is cancer are minimal.
Let us know if you need any other information.
Regards.