Drawpile Server Administration using RestAPI through NGINX reverse proxy

I need NGINX to take hostname forwarding (free service from noip.com) to and forward the request to the drawpile server (multi user drawing application) on my raspberry pi. The drawpile server is currently configured to respond to 127.0.0.1:8080 only on the raspberry pi itself. I have a generated password file which is already in place. The following block code is placed at the bottom of the file default located in /etc/nginx/sites-enabled/

server {
listen 8080;
server_name localhost greywinde.servebeer.com;
allow all;
location / {
proxy_pass http://127.0.0.1:8080/;
proxy_redirect default;
auth_basic "Server Administration";
auth_basic_user_file /etc/nginx/passwords;
}
}

The reason for using NGINX is as follows from the creator of drawpile: "The risk is that there could be a vulnerability in libmicrohttpd, which is the web server embedded in drawpile-srv, that can be exploited without sending a username and password. Such a vulnerability existing in nginx is highly unlikely."

I could be entirely wrong on how to set this up. I'm pretty darn new to Linux and I'm still bumping my way around it here. If you have any suggestions, even if it's related to my script to compile drawpile, it's appreciated. However the main focus at this point is just getting NGINX to work for administrating the drawpile server configuration. I hope this is enough details without being over the top, please feel free to ask for more if I omitted a detail in error.
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**Details**

Drawpile is set up to be activated by socket 27750 in systemd. I've included the script in case anyone is interested in testing it themselves. Once configured correctly with NGINX, you should be able to start drawpile-srv with the following line to connect to a remote drawpile server to configure it.

Drawpile Script and No-IP Scripts for use on Raspberry Pi 3, Raspbian 4.9
https://drive.google.com/drive/folders/0B1LTac-a237WMVNIWFg4RVJmRmc?usp=sharing

**Windows**
"C:\Program Files (x86)\Drawpile\drawpile-srv.exe" --gui --remote http://greywinde.servebeer.com:8080


**Linux**
drawpile-srv.exe --gui --remote http://greywinde.servebeer.com:8080
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