How do difficulty levels work?

Is it like Torchlight where once you've unlocked a difficulty level you start a fresh character at that difficulty?

Or like D2 where you have to get your character all the way through each difficulty before you can get to the next one, which you do with the same character?

I ask because I had thought it was the former, and have been rushing through with my first character to unlock something harder for all my subsequent characters, because the game is currently crazy easy for me (as a very veteran ARPG player). But if that's not how it works, I'm going to slow down a bit and enjoy the scenery!

-Robin
Its two acts, you repeat them four time in accordance to each of the four difficulties - Normal, Cruel, Ruthless and Merciless. At the end of Merciless we currently have the Maelstrum of Chaos, which is not going to be a live map, but is simply a filler end game content.

Also, the difficulties are in accordance with beefed up monster levels, therefore you only unlock them on one character, not all of them. IIRC.
yeah like D2 and what Epsi said.
Sweeping Maid

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