utils.setData vs useState for client-side state

// ...
onInput={(e) => {
    const newName = e.currentTarget.value;
    utils.application.getById.setData(
        applicationId,
        (prev) => {
            if (!prev) return prev;
            return { ...prev, name: newName };
        },
    );
}}
//...
// vs
//...
onInput={(e) => {
    const newName = e.currentTarget.value;
    setClientApplication((prev) => {
        if (!prev) return prev;
        return {...prev, name: newName};
    })
}
///...