cdiff is a wrapper for colordiff and will add colour to a diff given in a URL or a file, e.g.
It also adds support for reading gzip, bzip2, xz, and lzma compressed diffs, and like colordiff, also supports reading diffs from standard input if URL or a filename is not specified. cdiff pipes colordiff's output through less -R.
cdiff is part of the colordiff package, which should be consulted for further reference.
colordiff author, packager for colordiff/cdiff