A hub acts as a multiport repeater. However, as more and more devices connect to it, it would not be able to efficiently manage the volume of traffic that passes through it. A switch provides a better alternative that can improve the performance especially when high traffic volume is expected across all ports.
There are 4 protocols that are being managed by this layer. These are ICMP, IGMP, IP and ARP.
In case one workstation on the network suffers a malfunction, it can bring down the entire network. Another drawback is that when there are adjustments and reconfigurations needed to be performed on a particular part of the network, the entire network has to be temporarily brought down as well.