An eSIM in simple terms is a built in Simcard. The type which you can’t remove and don’t need to remove. The SIM stores all information that is necessary to identify and authenticate the mobile subscriber. The identification information can be updated over the air, to enable a change of operator. This may not be encouraged by the networks as customers can switch at every ‘dissatisfaction’ which means the network will be at the mercy of customers. Have you heard of Google’s project fi and Apple’s Apple sim? These are eSIMs touted as proprietary technologies.



Advantages of eSIM.

This means your SIM can’t get lost.

It will be easy to switch network operators as you don’t have need for physical change of SIM.

There will be better choice of plans due to increased competition.

Since there is no SIM card it makes it easier for the water proofing and the likes.



Disadvantages of eSIM

It’s easier to track. In conventional Sims you can remove your SIM card to stop someone from tracking you but eSIMs can’t be “turned off” presently but this is not an issue for everyone.

Once the phone stops working your details are lost unless you uses cloud services to store your messages, contact etc.



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I sometimes switch my sim between phones. For example when I go somewhere where it's likely that my main phone will be damaged.
I doubt that it would be as easy with an esim.