The basal cells divide continually and form daughter cells. Some daughter cells remain in the basal layer. Others move toward the outer surface of the skin and eventually form the upper layers of the epidermis. These cells are called keratinocytes, and they produce keratin. Keratin is found only in the epidermis, hair, and nails. Keratin makes the skin tough. It also prevents fluids and certain substances from passing through the skin. As the keratinocytes move upward through the epidermis, they become filled with more and more keratin. On reaching the surface of the skin, they have died and become flat and dry. Eventually, they are shed as thin flakes.