Inovelli LZW42 bulb drivers,is there a difference?

Is the inovelli multi-colored bulb driver the built in driver for these bulbs? If so, is there a difference between this driver and the official Inovelli driver? If different, which is better?

They're different in that Hubitat staff wrote the built-in driver (as they do for all), whereas Inovelli wrote their own custom driver. You may find commands or attributes exposed in slightly different ways, and lots of time custom drivers expose preferences (usually configuration parameters for Z-Wave devices) that the built-in drivers don't, though I don't remember the nuances of both off the top of my head.

I generally prefer Hubitat built-in drivers unless there is a feature I'm missing, but your preferences may vary.

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