Watched it and as I guessed you will again have, like in a distributed system, some management facility. Friedman call it a judge or arbitrator and everyone can have their own, where judges will work out contracts between themselves for disputes of their own.

So, this all sounds like P2P with an evolutionary system of contracts between all kinds of parties, where there's no universal rule book (aka what we know as a country's laws).

If this really works, good, but how do you solve that humans will see that the contract between two other parties is better and will want the same deal? Will you give it to them?

I'd really like to think this is workable as it would give custom-fit "laws" for everybody. Though, there still needs to be some kind of general laws for heinous crimes, doesn't it?