Color dithering is very similar black and white dithering, the difference is that instead of 2 colors (black and white), you have n colors, and you want to find the one that has the shortest distance to the current pixel. There are various formulas[1] to determine which color is closest, and which formula you choose will have an effect on the results. I built a dithering app[2] that lets you choose the distance formula, so you can see for yourself.

[1] https://en.wikipedia.org/wiki/Color_difference [2] https://dithermark.com