The network interface layer of the TCP/IP protocol suite, primarily comprised of the Internet Protocol (IP), serves as the backbone of modern internet communication. With its efficient data delivery, The network interface layer, presents key challenges in terms of performance, security, and privacy. This comprehensive survey delves into these three crucial aspects, analyzing the inherent vulnerabilities, limitations of the interface layer, and provide solutions of the related problems. The performance analysis explores throughput, latency, and bandwidth constraints, along with solutions such as bandwidth allocation and optimization techniques. Vulnerabilities within Network Interface Layer, including denial-of-service attacks and MAC address spoofing, are discussed, along with a review of existing security mechanisms. Privacy flaws are examined, covering MAC address tracking, profiling risks, and anonymization techniques, while also addressing privacy considerations on the Internet of Things. The survey analyzes several case studies providing comparative analysis of the network interface layer protocols, with support of the real world scenarios including performance analysis in high density environment, and security and privacy risks in smart homes networks. The findings provide a comprehensive understanding of the complexities surrounding performance, security, and privacy issues future directions and potential solutions.