We have installed Office Online Server OOS with SharePoint 2016. Multiple people can co-author the document. We want to see what each author typed or wrote into the document. After the whole document is done we want to keep track who wrote what into the document? Also is it possible that each author work be done in different color as each author has different color cursor with their name?

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This functionality does not exist Out Of The Box in OOS / SP2016. I assume that you have versioning enabled, that is about as close as you will be able to get to your requirement, unless your users manually change the color of the text they are entering.

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