Let's put this another way.
Contracts in our legal system are 3-way agreements- between 2 parties and the government, which agrees to enforce the contract. Contracts in Smuffin's system are 2-way agreements between the 2 parties only. What are the benefits of these approaches? The primary benefit of having 3-way contracts is that both of the non-government parties can have greater confidence that the contract will be performed, because the 3rd party will enforce it. This leads to more contracts being made, more trade conducted, and greater efficiency.
It is true that you can easily have 3-way contracts without a nominal government. But I submit that the more powerful the 3rd party is, and thus, the more they are able to act as a good contract enforcer, the more they actually assume the power and role of a government.
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Congratulations to SuperNiceDog, Guru Winner, who was smart enough to pick
your 7 time champion, Link.