The Shichibukai were introduced quite early into the One Piece series as seven powerful pirates who roam the seas freely. Unlike regular pirates, they weren't chased by the Navy because these pirates worked for the government and helped them eliminate other pirates. In return, they were allowed to continue living their lives on the seas with great freedom and continue being merciless pirates. Becoming a Shichibukai certainly isn't easy as it requires one to have tremendous strength and an aura that would intimidate other powerful pirates.
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As the story went on, these seven pirates became crucial to the politics of the many islands that Luffy visited. In One Piece's Alabasta arc, Crocodile, one of the Shichibukai, was the main enemy and stood in Luffy's way. Similarly, the Thriller Bark arc saw Gecko Moria control the Florian Triangle from the shadows and steal shadows of everyone passing through the sea. The Shichibukai also ended up playing a massive role and the Paramount War, where the Whitebeard Pirates and their allies clashed against the World Government and these seven pirates. The Dressrosa arc was quite similar to the Alabasta arc and saw Doflamingo attempt to run a country into the ground. While the Shichibukai certainly were helpful to the Government, their abuse of this power eventually led to the dissolution of the system. Now, every single member of the Shichibukai is being hunted by the Navy, just like every other pirate.
Buggy rose to the position of Shichibukai high after the Paramount War, thanks to his connections to the likes of the Roger Pirates and Shanks. After being given this position of power, he established himself as a great figure in the
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