To change your world difficulty, you will need to create a new world since the one that has been generated used the default difficulty. Follow these instructions :
- Stop your server
- Change your world name in the "settings" page
- Change the difficulty in the "settings" page
- Go back to the manage page and click "restart"
If you don't want to generate a new world, you can still use a tool called TEdit to change your world difficulty.
Once the difficulty changed, you can set the right difficulty of your Terraria server and upload your modified world
to the server.