I'm a newbie, here is my understanding of how transactions are made and how we make sure how many BTCs an address own.
if I didn't get it wrong, how many BTCs a address owned is confirmed by the whole block chain, derived from all the existing transaction recorded in the block chain. and through the private key is how we sign our transactions and modify the content of a wallet ( or the seed? I'm not sure, are they the same stuff?)
so, the question is
if we only have an address X, is that possible simply using X and the whole block chain to trace every single transaction of X, without other additional information? Which confuses me is that, I thought a transaction would be signed by a private key of the owner, and I'm not sure whether the block chain store the encrypted version of transaction only, or we have both the encrypted and the non-encrypted one in block chain
how an address is linked to the owner's real identity?
what i'm asking is much more like a scenario, if we buy BTC from a exchange, is the exchange the only possible way to investigate the identity? and in other websites I saw such terms like "connect your wallet to the Bitcoin network", what's that? does that mean we can trace a transaction by IP address?