Jason and Chas both mention running the engine without rings, though for slightly different reasons.
If the engine is only going to be ambling round at its prototypical 40-ish rpm on a whiff of air, not driving hefty (for it) machinery, the empty groove might function as a very simple labrynth seal.
The principle there is the sudden cross-sectional change for the air oozing past the piston then trying to squeeze into the next few-microns wide leak path, sufficiently inhibits the flow. I think more elaborate, formally-designed versions are used for example as turbine shaft end-seals.
It does demand a properly-fitting piston, though.
That curious dental-equipment (as it proved) air-compressor the subject of my thread elsewhere recently, has no grooves, rings, packing or anything like that. The single, double-acting piston is lapped into the bore, but crucially it is proportionately far longer in “thickness” than the disc in most model steam-engines.