Computer-aided drug design (CADD) uses computational methods to discover and optimize drug candidates. There are two main approaches: ligand-based design which develops a model of the target based on known binding ligands, and receptor-based design which relies directly on the determined 3D structure of the target protein. The receptor-based approach involves identifying the binding site on the target, generating a pharmacophore model of this site, searching databases for matching ligands, and computationally docking candidates to predict binding affinity. CADD aims to predict if a molecule will bind to the target and with what strength, helping to overcome the limitations of conventional drug design methods.