In this system, a level 45 character will find level 45 monsters in Act One or Act Five, and all the monsters will increase in level as a character levels up.
The level of the monsters is entirely scaling though, always changing to match that of the highest level character in the game. The current system, implemented in D3v2 and Reaper of Souls in early 2014, allows players to select difficult from Normal up to Torment 6, with monsters increasing in hit points, damage, and exp value with each level.
Difficulty in Diablo 3 and Reaper of Souls has changed greatly over the course of the game.