The European Dragon has always been evil in many Medieval stories and legends, where it would be guarding treasure, terrorizing villages, and kidnapping princesses. Usually, it is shown being slain by a knight or a heroic warrior with a sword. However, many modern stories simply portray dragons as being misunderstood rather than downright evil. Also, due to extra strong scale armor, most swords, without magic or enchantmants, would not be able to kill dragons.
Paranoia's version looks similar to a Wyvern.
According to Z-Studio, the dragon was made out of a peacock
Paranoia's dragon stands on two legs, while the animal is usually said to walk on four.