There are two kinds of Paragons:
Paragons can be identified by their name extension (grand/elite) as well as their color coded overhead Paragon tag as shown in the picture.
Grand Paragons are a stronger variants of it's original.
Elite Paragons are even stronger than Grand Paragons.
The loot is up scaled accordingly to the new stats and skills of the creature.
Additionally, each paragon will have a Paragon Chest in its loot.
The higher the players luck value and the tougher the enemies they defeat, the higher the level (1-6) of the Paragon Chest they'll receive. Color coded as shown in the picture.
To open a Paragon Chest, you need to pick the lock and deal with the trap.