No, that’s slightly better than using an Ethernet adopter, but isn’t my preferred route. A NodeMCU or ESP32 in place of the Arduino would be far better, provided it gives you the connectivity you need. A discussion of Arduinos versus NodeMCU’s is here:
This doesn’t cover ESP32s, but that’s an option of you need more pins or more analogue inputs.
After that I will use this sketch for the reconnection:
The sketch you linked is for a stand-a;one ESP8266, not an ESP-01 used as a Wi-Fi adopter. There are some examples on the forum for the Arduino/ESP-01.
Yes, of course, provided your router or internet connection never goes down, the Blynk server never goes down, you don’t have any power supply brownouts, and all of the libraries that you use are 100% reliable and don’t have any bugs or memory leaks.
Pete.