Libertarians have been point out for years that the notion that we can change government into a non-parasitic and non-rights violating entity is false. The common response to this is "Who will prevent gangs and other people from violating the rights of others without government?"
Well the answer to that question is the free market. I had stumbled upon these three videos by the YouTube user Man Against The State and they explain how such an arrangement would work.
Part 1: Principals
Part 2: Conflict Resolution in a Free Society
Part 3: The Bargaining Mechanism