Design Challenge #39 - Canonical Data Model Defined

There are a bunch of new buzz words popping up in our field. One term I hear quite a bit lately is 'Canonical Data Model'. I recently explained this term to a fellow Design Challenger, yet I would like to hear your explanation as well. Please define 'Canonical Data Model' and give at least one example. 

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My definition of 'Canonical Data Model' along with an example:

Response coming soon!