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Nail polish (nail varnish) is a lacquer applied to toenails and fingernails for appearance, but also as nail protection. Polishing without adding chemical layers is called nail buffing.

Most nail polishes are made of nitrocellulose dissolved in a solvent (e.g. butyl acetate or ethyl acetate) and either left clear or colored with various pigments. Basic components included are: film forming agents, resins and plasticizers, solvents, and coloring agents. Adhesive polymers (e.g. tosylamide-formaldehyde resin) ensure the nitrocellulose adheres to the nail's surface. Plasticizers (e.g. camphor) are chemicals that link between polymer chains, spacing them to make the film sufficiently flexible after drying. Pigments and sparkling particles (e.g. mica) add desired color and reflecting characteristics. Thickening agents (e.g. stearalkonium hectorite) are added to maintain the sparkling particles in suspension while in the bottle. Ultraviolet stabilizers (e.g. benozophenone-1) resist color changes when the dry film is exposed to direct sunlight. Nail polish ingredients often include toluene. Solvents such as toluene and xylene are petroleum-based products that have been linked to cancer. Formaldehyde (formalin) may cause allergic reactions and is unsafe for use by asthmatic people. It is a carcinogen.

Nail polish makers are under pressure to reduce or eliminate toxic ingredients, including phthalates, toluene, and formaldehyde. In September 2006, several makers agreed to phase out dibutyl phthalate, which has been linked to testicular problems in lab animals and humans, in updated formulations. Some makers eliminated formaldehyde from their products, others still use it.

A recent development (ca. 2003) is water-based nail polish, which is based on an acrylic polymer emulsion (e.g. styrene-acrylate copolymer), and pigments similar to those used in watercolor paints.[citation needed] This is marketed as an environmentally-conscious product, since nail polish is considered a hazardous waste by some regulatory bodies (e.g. Los Angeles Department of Public Works). In this application, the solvent (water) does not completely evaporate as in the case of the traditional nail polish; part of the water is absorbed through the fingernail.

Source: wikipedia.org
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